INFLUENCE OF STRATEGY TYPOLOGY ON PERFORMANCE OF FREIGHT FORWARDING COMPANIES IN KENYA

Abstract

Strategic management scholars have argued that firms in the same industryhave varying performance outcome attributed to several aspects such asthose registering exemplary performance embracing strategy typologies inthe face of intense market demands and rapidly changing competition tosurvive and maintain superior performance. The aim of this study was toestablish the influence of strategy typology on performance of freightforwarding companies in Kenya. The research was based on the industrialorganizational economic theory. Positivism research philosophy anddescriptive cross-sectional survey were used. Stratified random sampling wasapplied to derive a study sample of 120 freight forwarding firms. Primarydata was collected using semi-structured questionnaires. Data was analyzedusing regression analysis. The results of the study showed that there was asignificant influence of strategy typology on organizational performance. Thefinding supported the arguments that industrial organization economictheory assumed that an organization’s performance and ultimate survivaldepend on its ability to adapt to industry forces, even though theorganization has limited control. The study is set to enable management tomake informed decisions while planning for their medium and long-termstrategies. Strategies that are appropriately implemented enable theorganization to compete and record improved performance. The researcherrecommended replication of the study in different sectors and countries toenhance understanding of the relationship between strategy typology andorganizational performance